In the early part of the 1960s, South Korea was going through a serious trade deficit. The domestic market of the country was not truly that strong to support domestic industries. After WWII, when Korea was divided by the Allies, all the natural resources were in the territory north of the 38th parallel. With its stronger military, North Korea, wasted little time before invading the South after the US military withdrawal. In 1953, the country was finally at peace, and South Korea began an intensive drive towards economic development, transforming quickly from an agrarian economy to an industrial, centrally planned economy. Determined to never again experience hostile invasions and lack of essential resources, South Korea became an economic miracle. Daewoo Group was established by Kim Woo Choong during this period of economic emergence. Daewoo, that means "Great Universe," was founded in the year 1967.
The initial share capital of the corporation was only $18,000, but Kim together with his partners believed that the business would become a great success. This proved true, and Daewoo went on to become one of the nation's biggest chaebols, or conglomerates. The business had operations in a wide range of industries, like for instance motor vehicles, building ships, heavy industry, aerospace, telecommunications, consumer electronics, trading and financial services. Exports were promoted a lot and a network of offices was established abroad. Ultimately, there were more than 100 branches all around the globe. The corporation at its peak sold thousands of different products in over 130 countries. By the late 1990s the company had become significantly overextended. Daewoo was seriously in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the company dismantled in 1999 and other businesses bought most of the company's holdings.